• To examine the criteria that post-graduate MBA students consider important when selecting a bank.
• To determine how these criteria are prioritized according to their significance.
• To determine how these have impacted on the lives of post-graduate students.
• To examine whether post-graduates constitute a homogeneous group in the way they select a bank.
The results from the study indicated the following selection criteria for retail banks:
6.2.1 Selection criteria that post-graduate MBA consider important
The location of the bank proved to be one of the most significant selection criteria customers us to choose a retail bank. The results in this study indicated that about 72% of the respondents agreed that the location of the retail bank was indeed important to them. This was found to be in agreement with previous studies where most of the respondents were found to be in favour of the location, accessibility and convenience of the retail bank.
The presence of security personnel also proved to be essential selection criterion customers use in their selection criteria of retail banks. Most of the respondents agreed that the presence of security personnel played a significant role in their selection criteria of retail banks. This means that most of the respondents felt that the presence of a security system influenced their selection criteria of retail banks. It was, therefore, concluded that MBA students want to always feel secure when they do their daily banking activities.
The availability of a parking facility proved to be a significant factor influencing customers to select retail banks. The results indicated that 81% of the respondents agreed that the parking facility was significant to them. This verified that most MBA students are greatly influenced by the availability of the parking facility in the selection criteria for retail banks. The findings from
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the study and literature emphasize the significance of the availability of a parking facility, which then provides convenience to the customers as well as reliability as significant factors in the selection criteria that is employed by MBA students when choosing a retail bank.
Easy access to the banks seemed to be one of the most vital selection criteria used by customers to select banks. The results indicated that 90% of the respondents agreed that easy access to the banks indeed influenced their selection criteria of retail banks. This meant that easy access is one of the most significant selection criteria employed by MBA students when they chose retail banks.
When it comes to the handling of customer problems it matters a lot how these are handled.
Professional handling of problems by the retail bank was found to be the most significant selection criterion in the customers’ selection of retail banks. This indicated that customers really enjoyed being taken seriously when they experience problems.
When it comes to efficient handling of problems, the results indicated that all (100%) the respondents agreed that efficiency in handling problems experienced by customers played an important role in their selection criteria of retail banks. This signifies the importance of handling customer problems efficiently. This improves customer loyalty. A lower level of loyalty generally means that customers are and will always be ready to leave the bank if need arises.
They are or will be unwilling to remain in a situation where their needs are deemed unessential or ignored.
The handling of customer complaints is important, however, the manner in which these are handled is even more important. Handling of complaints to the satisfaction of the customer breeds customer satisfaction. The findings in this study indicated that most (74%) of the respondents agree that views and feedback from other customers with regards to service recovery did play an important role in their selection criteria of retail banks. Service breakdowns experienced by customers have often been found to be leading to customer dissatisfaction. This then defines how crucial customer satisfaction is to the success of every commercial banking
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sector as this often makes customers to remain with the same banks, and is likely to recommend it to other individuals.
The attention given to a customer when he/she has concerns determines whether he/she will remain with same bank or choose another bank in its place. If the customer is given full attention he/she is more likely to remain with the same bank. The results from the survey indicated that all the respondents agreed that being attentive to customer concerns indeed played a significant role in their selection criteria of retail banks. This means paying attention to individual complaints and not only caring for the ‘rich’ and ‘essential’ customers who are believed to be the only ones who bring profit to the bank. Banks should realize that each individual is essential in his/her own way in the profit creation of the bank.
This study has found that the ability to resolve queries over the phone plays a significant role in the customer’s selection criteria of a commercial bank. Results from this study indicated that most (76.67%) of the respondents agreed that the ability to resolve customer queries over the phone played a significant role in their selection criteria of retail banks. Efficient handling of problems, being attentive to customer concerns, as well the ability to resolve customer queries over the telephone, more often than not, breeds customer satisfaction, which eventually results in customer loyalty. Findings in this study confirm findings of previous studies that listening to customers and immediate response to queries added to customer satisfaction.
It is assumed that a customer may at times receive poor service from a bank. What is vital is whether or not he/she is offered an apology by the attendee. An apology is expected by the customer after a poor service delivery. The results from this study indicated that most (87%) of the respondents believed that offering an apology for poor service was vital in their selection criteria of retail banks. This indicates that offering an apology is vital as a strategy for retaining customers.
Most individuals are expected to be influenced by their parents in their making of choices in life.
This is because parents are expected to know more than their children due to the vast experience they possess since they have been around for a longer time. The results from this study have proven otherwise, though. Results indicated that only 22% of the respondents were influenced
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by their parents in their selection of retail banks. While 26% of the respondents disagreed 52%
offered no opinion on the matter. Findings in this study also differ slightly from the previous findings. For instance, a study which focused on consumers and their selection criteria of banks which provided them with general banking services indicated that parental influence had greater influence on the choices that consumers made when they selected banks. This study, therefore, concluded that the respondents were less likely to be influenced by their parents in the choices they made regarding retail banks.
It is also usually assumed that when something is recommended by someone it should be good and may be trusted. The results from this indicated that 52% of the respondents agreed that their selection criteria of retail banks are influenced by recommendations by other people. This means that some customers are greatly influenced by recommendation by other people.
Promotional literature in the branches often contains information that is vital to customers. They are, therefore, expected to use this information when making choices about banks. The results from this study have indicated that 35% of the respondents agreed that promotional literature played an important role in their selection of retail banks. The results indicate that a smaller percentage of customers rely on promotional literature to make choices about retail banks.
Technology has advanced so much that everyone is assumed to be dependant on it. It may be assumed that bank customers may from time to time use the internet to choose banks. The results from this study have proven otherwise. They have indicated that 33% of the respondents relied on online advertising for their selection criteria of retail banks when compared to 19% of the respondents who disagreed and 48% who offered no opinions on the matter. This indicates that most customers do not base their selection criteria on online promotions. This could indicate their lack of trust for online advertising.
103 6.2.2 How these criteria are prioritized
TABLE 6.1: Prioritization of Bank Selection Criteria of MBA students
SELECTION CRITERIA FOR BANKS in the order of importance Percentage 1. Professional handling of problems by the retail bank 100
2. efficiency in handling problems experienced by customers 100
3. being attentive to customer concerns needs 100
4. easy access to the banks 90
5. offering an apology for poor service 87
6. the parking facility 81
7. the ability to resolve customer queries over the phone 76.67 8. views and feedback from other customers with regards to service recovery 74
9. the location of the retail bank 72
10. the presence of security personnel 71
11. recommendations by other people 52
12. promotional literature played an important role 35
13. relied on online advertising 33
14. influenced by their parents 22
6.2.3 How these have impacted on the lives of MBA students
Results from this study indicate that the criteria MBA students utilize in their selection of retail banks have great impact on their lives. As a segment that is either working, aspiring business individuals or already owning businesses it is clear that they are quite busy individuals. It can be inferred from the study that for MBA students, simplicity is one of the most important aspects that they are seeking when they select a bank. From the study it has been perceived that selection criteria such as professional handling of problems, efficiency in handling problems, being attentive to customer concerns as well as easy accessibility to the banks offer this simplicity for the busy MBA students. Offering of apology for poor service, parking facility, ability to solve
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problems over the phone, views and feedback from other customers with regards to service recovery, the location of the retail bank and the presence of security personnel ranked in the middle in the order of priority for MBA students. These also proved to be very important in that they accommodated their daily busy schedule. From the results it became clear that if banks attempt to offer these they are going to easily attract and retain these customers.
Recommendations by other people, promotional literature, reliance on online advertising and influence by parents ranked low in the MBA students’ order of priorities. These were assumed to have little impact on their lives.
6.2.4 Do MBA students form a homogenous group?
The findings from this study confirm findings from previous studies. This means that MBA students do form a homogenous group in that they utilize similar criteria when they select retail banks.